Because Once a Week…You are Entitled to My Opinion!

Weekly Real Estate Industry News, Opinion & Humor

Archives for January 2011

In accordance with a decision that was reached by the interministerial privatization committee, the Greek finance ministry has announced that it will take steps to speed up the process of privatizing real estate and other assets. As part of the new process, the country intends to raise EUR7 billion between 2011 and 2013 through privatizations. With the help of these funds, Greece intends to reduce its high budget deficit as well as its significant national debt while also paying back the EUR110 billion it receved as part of a bailout agreement. By making these changes, Greece will be following through with one of the several conditions that were imposed upon the country by the International Monetary Fund as well as the European Union as part of the bailout agreement.

“The government is determined to achieve its target with absolute transparency while safeguarding the public interest, promoting reforms and restructuring in sectors that can contribute to growth and competitiveness,” said the finance ministry in a statement.

As part of the process, the ministry’s special secretariat for asset restructuring and privatizations will appoint new advisors. These advisors will be responsible for completing a quantitative and qualitative inventory of state-owned real estate assets, a process which is expected to be completed by June of next year. Furthermore, the finance ministry intends to utilize the fast-track investment laws to assist with the development of the old Hellenikon airport. The ministry will also take a closer look at its mature public real estate assets. Other steps the ministry is prepared to take in order to repay its debt is to extend the concessions of the Athens International Airport, to sell a stake in the natural gas network operator DESFA, to sale a stake in natural gas supplier DEPA and to look for a strategic investor for its Hellenic Defence Systems (EAS). The country is also planning to sell 11 of its regional airports, extending its concessions for Attiki and Egnatia motorways and unbundling its Loan and Consignment Fund.

Since tourism has long been an important source of funding for the country, the ministry also intends to take steps to help boost the tourism industry. One step will be to develop marinas close to 850 regional airports.

In Arizona’s Maricopa County, where Californian’s were once the biggest source of outside homebuyers, a recent report has found that Canadians have now taken their place.

According to figures tracked by John Burns Real Estate Consulting, which is based out of Irvine, California, Canadians supplanted Californians as the biggest buyers in the county from December 2009 through to June of this year. Arizona isn’t the only place seeing a large number of Canadian buyers, however, as Jed Smith, who is the managing director of quantitative research for the NAR, has also reported that Canadians have significantly increased their presence in the United States real estate market. Consider these findings:

Canadians accounted for 11% of foreign homebuyers in 2007

From April 2007 to April 2008, Canadians accounted for 24% of foreign buyers

From April 2008 to April 2009, Canadians accounted for 17% of foreign buyers

From April 2009 to April 2010, Canadians accounted for 23% of foreign buyers

As a result, the NAR is reporting that Canadians have been the top foreign buyers over the last three years, followed by Mexican, UK, Chinese, German/French, Indian and Argentinean/Brazilian investors.

In addition to leading the pack in terms of foreign buyers, Canadian buyers also tend to make different types of purchases than those bought by investors in other countries. While foreign investors typically invest in upper end homes, Canadian buyers tend to purchase more in the $200,000 range. Since prices have dropped significantly in western states, many Canadian buyers are finding these homes to be more within their price range. With most Canadian buyers coming from big cities where homes are quite costly, being able to purchase a vacation home in an area where homes can be purchased for $100,000 to $200,000 is a deal that is difficult to resist.

Of course, the fact that Canadians are outpacing Californians when it comes to purchasing property in Arizona is not all due to the fact that prices are low. Another contributing factor is the fact that California has also been hard hit by the recession. As a result, fewer Californians are in the position to sell their homes in order to move to another state.

Costa Rica’s Hacienda Matapalo is considered by many to be the most sought after gated community on the country’s South Pacific Coast. Therefore, many people were quite pleased to hear that construction on the community’s infrastructure resumed operation, which means future residents are one step closer to being able to move into their new homes.

“This continues to be an exciting time for us,” said Brian Albury, who is the Executive Vice President of Hacienda Matapalo, in a recent press release. “When the first of several large machines began to appear on the property to work on the infrastructure, we finally saw the realization of our planning coming to fruition. But now that they can really start to make headway, well, it’s something special.”

Once construction is complete, residents of the 665-acre Hacienda Matapalo will enjoy living a life of luxury within the resort-style community. Some of the amenities that will be found onsite include:

Basketball courts

Community center and clubhouse with several infinity edge pools

Equestrian center

Multiple picnic areas

Playgrounds

Private beach club

Tennis courts

The community will also be filled with natural beauty, including streams, waterfalls, lakes, forests and mountains. In addition, residents will enjoy access to 26 miles of unspoiled beach.

Aside from the numerous amenities that are provided to residents of Hacienda Matapalo, the community also offers a variety of different services to its residents. These include:

Concierge services

Gated security

Maid services

Rental and management services

The community also boasts a small retail center, which will house restaurants as well as businesses designed to meet the basic necessities and conveniences of residents, such as a grocery store and medical services. Furthermore, for the eco-conscious homeowner, the community has been built and developed with nature in mind.

“Developing in a sustainable and ‘Green’ minded manner is and has been at the forefront in the design, engineering and planning of Hacienda Matapalo,” said Albury. “Environmentally sensitive designs have been a consideration from the beginning and continue to improve as our team works closely with our architect, engineers and biologists. The condos and homes have been designed to blend with nature and the use of native materials will enhance the Hacienda Matapalo experience.” The community is also located near to a number of natural attractions, including the Manual Antonio National Park.

According to a Press Release by Keller Williams, KW and CitiMortgage have entered into an agreement to provide mortgages with reduced fees and a $1,500 on time closing guarantee. While this is not the first agreement of its kind in the industry, it is part of a growing trend among franchises.

“Our goal is to ensure that our associates have access to the best resources possible so they can focus on their main priority-their client. We are confident that with five million mortgage customers, CitiMortgage has the experience and expertise to support our Market Centers and associates at the highest level possible,” said Anthony Azar, director of strategic business alliances at Keller Williams Realty.

Another part of this deal will give Keller Williams market centers the opportunity to have a lender presence in their offices.

“Our new relationship with AOL Real Estate is an exciting opportunity for Move to once again deliver on our commitment to connect agents with large, high-quality audiences of potential buyers,” said Move, Inc., Chief Executive Officer Steve Berkowitz. “By remaining focused on delivering an exceptional user experience, accurate data, and high value products, Move continues to build our category leadership to the benefit of consumers, agents and brokers. We’re excited to move forward with AOL and use our combined strengths to help agents and advertisers grow their businesses.”

“AOL will be doubling down on our strategy in 2011,” said Tim Armstrong, Chairman and Chief Executive Officer, AOL Inc. “As part of that effort, we will be partnering with companies in areas that add strength to the consumer experience and drive profitability for AOL.”

The net effect of the deal is expected to be that AOL will be provided syndicated listings from Move, Inc. and that they will jointly work towards sales efforts to REALTORS, brokers and other advertisers. Financial terms of the deal were not made available.

In a press release yesterday, Homes.com announced that they have entered into a “major” advertising agreement with RE/MAX Intl.

According to the press release and statements by both companies:

“We are excited to announce this landmark partnership with RE/MAX, one of the nation’s largest real estate franchises,” said Jason Doyle, vice president of Homes.com. “Homes.com has a proven record of attracting qualified prospects who are in the early stages of the home buying process. With this partnership, we are also enhancing the consumer experience by streamlining the hand-off to industry-leading RE/MAX agents at the local level.”

“Remax.com is the most visited real estate franchise Web site because we offer buyers and sellers tools and resources to make good decisions in any market and comprehensive information on listings around the country,” said Marnie Blanco, RE/MAX Vice President, eBusiness. “Our partnership with Homes.com gives RE/MAX listings added visibility and drives more buyers and sellers to a qualified RE/MAX agent.”

In a move designed to maximize the potential to achieve positive cash flow in the near term, Zip Realty announced office closings of less productive offices. In this press release, the CEO of Zip Realty stated the following:

“We believe that the changes we are implementing today position ZipRealty for improved near-term financial performance and stronger long-term growth,” said Lanny Baker, the Company’s Chief Executive Officer. “Performance in our strongest markets demonstrates that when ZipRealty’s advantages in technology and online marketing are aligned with all-star real estate agents and outstanding local leadership the results can be compelling – for consumers, agents and stockholders alike…The pressures on the real estate market continue to be severe, and we are purposefully adjusting our cost structure and operating strategy to concentrate resources on the Company’s most attractive opportunities. Beginning with our transition to the independent contractor model in 2010 and extending beyond today’s announcements, we are committed to identifying new ways to amplify the Company’s core strengths in technology and online marketing.”

This move comes after the company’s earlier change this year that changed the status of agents from employees to independent contractors. This latest change is expected by the company to result in a $20 million increase to the bottom line. More complete financial results from Zip Realty will be forthcoming with their regularly scheduled quarterly financial results in March.

Market Leader has announced that they and DotLoop have been selected by Keller Williams to power a new Keller Williams marketing platform, The new platform is set to be rolled out at the Keller Williams Family Reunion later this year.

“The launch of this platform is a bold move by Keller Williams and a major product innovation for Market Leader,” said Steve Murray, editor of REAL Trends, a leading source of analysis and information on the residential brokerage industry. “The real estate industry has talked for years about the need for integrated solutions. , but to my knowledge, this will be the first time it’s been done.”

The details of the platform as well as what it will accomplish still have yet to be seen. According to the press release:

“Market Leader is proud to have been chosen by Keller Williams to provide a single, seamlessly integrated system to manage their associates’ web sites, lead generation, contacts, and all of their marketing materials,” said Ian Morris, CEO of Market Leader. “This innovative solution will help tens of thousands of agents manage their business while also providing them with ongoing access to a wealth of other services designed to help them accelerate their growth and success.”

In a supplemental revision issued by the Treasury Department, HAFA participants now have new options (and new requirements) when dealing with short sales. The biggest of these changes allows 1st lien holder some more flexibility by eliminating the 6% cap on payments to 2nd lien holders, but the cap remains at 6%, meaning that the change will only potentially impact homes under $100K in value.

Among other changes:

Vendor Fees (currently which can be charged to the Seller or the listing broker as a deduction from commission) are now not allowed to be deducted from commission OR charged back to the seller.

Prior to a foreclosure, lenders are instructed to first offer a possible short sale and if not that, then a deed in lieu.

As part of pursuing a short sale in good faith, a servicer has 30 days to send the borrower a short-sale agreement, which clarifies what list price or acceptable sale proceeds would be.

Once an executed contract is in place on a short sale, the loan servicer has 30 days to respond.

These changes are effective Feb 1st according to the supplemental document linked above, but lenders are free to adopt these guidelines earlier if they would like.

I’ve become more intrigued lately by the number of agents putting the QR bar code scanner on the back on their business cards. I’ve decided to write this post for the need of an opinion. Should the square shaped QR bar code be on the back of a business card. Recently in South Florida, a large company accounced they are putting the QR bar code scan on all real estate sign riders so anyone who drives by a homes, can simply scan the QR bar code and access all the information of that property.

The great idea behind the QR bar code on the real estate signs or business cards is that it captures a lead. You receive the buyers information, including their name and telephone number. Although it does not capture an email address for dripping purposes. So the question must be asked. Is a QR bar code acceptable on a business card or only a real estate sign rider? My opinion stands, the QR bar code only has a place on sign riders. What is your stance on this topic?